Selling insurance policies is not an easy task more so when it comes to life insurance. However, it is good to note that when skillfully done well, it is an industry with a lot of potentials to grow the individuals involved.
Now, before we get into the selling tips, it is important we all understand what is meant by life insurance and how it works for us to be on the same page.
Basically, a life insurance policy is a contract between the insurer (insurance company) and the insured (the client buying the policy), whereby the insurer is bound to pay a given sum of money (lump sum) in exchange for premiums in case the insured dies, or after an agreed period of time.
Usually, life insurance policies differ. In addition, it is important to note that each country/state’s insurance regulatory policies are different. That means terms and conditions will always apply.
Types of life insurance policies
There are two types of life insurance; term life insurance and permanent life insurance policy.
The term insurance policy also referred to as pure life insurance provides coverage for a specified period of time usually between 10 and 30 years. As the name suggests, there is no cash value attached to the policy, thus, once the term is over nothing is left.
On the other hand, permanent life insurance provides life cover. That is, the cover is active in your entire life. It includes cash value which makes it possible for the insurer to determine the compensation. Remember this is if and only if the policyholder adheres to all insurance policies in regard, including paying premiums.
Permanent life insurance is further subdivided into two; whole life insurance and universal life insurance. In whole life insurance, the premium is constant throughout life. The death benefit is guaranteed and the cash value growth rate is again guaranteed. Universal life insurance is less costly. However, its premiums, death benefit, and cash value growth vary. This makes the contract complex.
Tips of selling life insurance
As earlier aforementioned, selling life insurance policies as the sayings go, ‘is not a walk in the park or a bed of roses.’ As the agent or seller for that matter, you are likely to meet high customer rejection, lack of audience, stress, and attrition. This calls for the mastery of the relevant skills on how to navigate in the field. There are different ways one can use to sell life insurance policies as a pro. Below are some of the ways you can use.
Know your audience.
It is important to know your audience for you to make sales. With the current state of life, 8 in 10 families have life insurance policies are planning to. This clearly indicates the possibility of fetching more clients. Family breadwinners are the best audience for life insurance. This cohort is usually concerned about the future financial needs of their dependents for instance spouses, children, or even parents. Thus, it is easy to convince them to have a plan for them in form of taking life insurance.
When out in the field to win clients, it is important you present yourself professionally. Insurance is expensive and no one would wish to engage a roughly dressed guy pursuing them to buy insurance cover. This is means that the first impression matters a lot. Being presentable boosts confidence. Be excited and eager always. As a matter of fact, a worn-out or dreary appearance will scare away and discourage potential customers. Compose and trust in yourself when engaging the clients and be sure to win two or three.
Always put the needs of the client(s) first.
Though every insurance broker or agent is hungry to make money, do not be out there to only earn your commission without taking into consideration the need of your client. You will fail terribly in the long run. If you give clients time to express their needs, you will be able to earn their trust and so be able to sell. Most importantly, is to give clients what fits them better even if it means low commission on your side. This is important since the client is most likely to be retained.
This would simply call for the ability to listen and empathize with the clients. When you do so, you are able to have a deeper understanding of their needs and hence easy to discern what they really need. You will agree with me that if you are tactful to help a client see the financial reality clearly, the probability of convincing them is guaranteed even when they are against the idea.
I would argue that this is the most essential quality of good insurance brokers or agents. We said that there would rejection from the clients. But be sure every ‘no’ brings you closer to a ‘yes.’ Always follow up with the client, trouble them but professionally. You might be surprised that some will give in to your persuasion, but if you do it in a good way. Do not be a bother to your clients.
A good agent will always tell the truth up front. This potentially wins them clients’ trust and respect; hence the business can take place. Deceiving clients to earn your commission will stagnate your growth in the industry. In some cases, deception attracts arraignment in courts of law and other judicial systems. Tell the truth.
Good customer service.
A good insurance agent gives timely responses to customers’ inquiries. If customers are able to access you at their hour of need, they are likely to stay happy with your services and hence easy to retain them. Therefore, to sell the policies as a pro, you should be able to do what you say you will do at the right time. Sometimes, it might be possible to fulfill all that. If that is the case, have a good and valid reason as to why you failed or delayed.
Have a wide array of products or offers. For instance, you cannot be persuading a customer to buy life insurance cover and yet have no reason to convince them. Let them know that you are a pro in the field. Tell them what life insurance is. Types of life insurance policies. Why has it? Etc. In nutshell, you should give comprehensive details about the product.
A good insurance agent has a lot of knowledge about the product. Not just selling the policies. For instance, you must understand legal and taxation procedures and how they fit into the client’s financial situation. When you are equipped with this information, you are not only going to sell but also advance in the industry. You can be a certified financial planner or insurance consultant.
In conclusion, the above points are some of the most important qualities you should/must have as a life insurance agent. Though this business is very challenging, those who adhere to these items become very successful. Nothing comes on a silver platter. Learn these and other important skills if you need to build your career in the life insurance industry.
Also read: Why you need an insurance policy
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